Transfinancial Economics

Introduction.

The summary found here gives one a basic overview of
Transfinancial Economics, or TFE which then leads on
to a more detailed essay, or "paper". It should just
take a few minutes to read for those pressed for time.
However, it should be noted that it comes after a
short summary of Positive Human Politics, or PHP. Like
TFE it is a research, and development project but no
detailed essay, or "paper" follows it. Essentially,
PHP is the basic political background of our main
subject matter. One can skip it if desired, and go
straight to the summary on TFE.

Also, a short list of references are placed right at
the end of this presentation. Alot more may be added
at some future date.

Positive Human Politics, or PHP can be seen as the
Modern Universal "Paradigm". Like TFE it is neither
right-wing, or left-wing in approach but simply
creates a basic transformative humanitarian framework.
In it realistic, civilized,and progressive solutions,
or options are presented. It seeks for the
popularisation of such notions to largely replace
negative thinking, and general apathy on all things
political.

Most of the major ideas for PHP already exist under
different terms, and tend to vary only in "minor"
detail as far as theory, and practice are concerned
(eg. gaian democracies, co-intelligence, holistic
politics, et al).A book entitled The Age of Consent by
the journalist George Monbiot is a good example of
advanced thinking involving among other things the
concept of a genuinely accountable World Parliament.
The futurist Jacque Fresco offers in his writings, and
talks a more "utopian" view of what could be. He draws
his inspiration from technocracy,transhumanism, and
the like.

There are many examples of Positive Human Politics.
They notably include the following:-

a) The continued relevance, and importance of the
Universal Declaration of Human Rights as the basic
ethical foundation for change. This would lead to the
greater development of possible enforceable
International Laws along with their "correct"
interpretation.

d) Greater evolution away from adversarial politics to
something more positive, and progressive.

e)Reducing the information overload notably of social,
economic, and political knowledge using the least
number of words to describe issues for, and against a
topic in a way which is seen to be genuinely open,
holistic,and accountable. This would have notable
implications for direct democracy.

f)Binary Economics, and other similiar proposals for
fairer wealth distribution.

g)The importance of the proper, and safe development
of new sustainable technologies.

h) Full-scale nuclear disarmanent if at all possible,
or at least the simultaneous development of non-lethal
weapons in which death, and destruction no longer
occur in "pointless" wars.

i) The European Union can also be seen as a form of
positive, progressive evolution, but still requires
more reforms to make it more open, and legally
accountable. The idea of a Super-State may seem fine
in principle but such a political union may well be
superflous. Growing cooperation between independent
sovereign states is arguably the best, and "safest"
way forward.

Such proposals are good examples of PHP. Yet, we have
no intention of expanding this subject. Much of it
anyway is pretty obvious to all "right-thinking
people".Unlike TFE there is as yet no lengthy essay on
PHP giving further details. Now, we examine the
former.

Transfinancial Economics/ The Basic Summary.

Transfinancial Economics, or TFE itself is also known
as Non-Taxation Monetary Reform. It believes that new
unearned money could be created for democratic
governments both local, and national without raising
taxes. Many NGOs, or independent non-governmental
organizations could also be funded in a similiar
manner either in full, or in part. Thus, in most
cases, fundraising, and donations should be largely
unnecessary.This can also lead to greater
decentralisation of power from central government if
desired.

Anyway,the creation of new unearned money itself
without taxes, or fundraising would not lead to
uncontrolled inflation, and devaluation of
currency.This would be directly controlled by advanced
computer technology. However, anonymous cash
transactions would still be possible.

There is more than enough money to change the world.
The problem notably for NGOs is legal access to it.

In TFE there is no redistribution of financial wealth,
but NGOs concerned with fairer wealth distribution,
and morally progressive concepts such as Binary
Economics would be financially empowered as never
before. Thus, their influence on public opinion would
be far greater.

For some people TFE can be seen as a "transitional"
system that would ideally lead from the greed of
competative capitalism to fairer economic systems both
large, and small which would cooperate with each
other. Unfortunately, this process would probably take
many, many decades to occur.Though "scientific"
evidence indicates that mutual cooperation for selfish
ends is the real natural driving force in society
there will "always" be the few who are "greedy," and
"competative" enough to succeed as top businessmen,
and command huge sums of "earned" money, and
resources.

On the other hand, real genuine socialism which
confessedly has a more just, and fairer understanding
of capital may gradually manifest itself fully. There
may even come a time when everything may become free
on demand without exchange of money at all.

TFE realizes though that the present competative
capitalist system is too well entrenched in society
for it to be removed. As such it does not waste time
opposing it but uses its new understanding of money to
allow it to flourish as never before.

As already indicated, and bears repetition there is
also the new financial empowerment of NGOs concerned
with social, economic, and political reform. They
would be able as never before to speed up the pace of
positive change.

Apart from the creation of new unearned money interest
free loans could also be created responsibly. In TFE
we are also dealing with a high, or higher growth
economy. With the introduction of a tax, and interest
free world research, and deployment of various simple,
and complex sustainable technologies would be speeded
up as never before to ensure that total resource
scarcity cannot happen.To a very limited extent, this
is already occuring in the rich Western countries.

The possible social, economic, and political
implications of TFE are massive. The creation of new
unearned money can solve many problems including:-

i)The financing of pensions.

ii) Greater financial empowerment of NGOs concerned
with corporate responsibility in connection notably
with the environmental destruction, and the rights of
workers. These would be challenged as never before on
an equal playing field.

However,a more positive, and totally revolutionary
approach (called Ethical Business Conversion, or
EBC)is the notion that they can become reformed with
powerful monetary inducements (or legalized
"bribes")to behave more ethically, and in a way which
respects sustainability, and environmentalism. At the
same time, they would create even greater profits
(heavily subsidized ofcourse)than before! TFE would be
in their own interest if they are able to understand
its massive global significance.

More importantly, positive engagement with
corporations, and indeed, banks (which under license
could have their interest, and other charges created
for them by an independent financial authority without
charging the customer) would make the changeover to a
tax, and interest free economy alot easier to
materialize than launching a moral crusade against
them. More importantly, humanity may not have long to
go unless there is new, and revolutionary
understanding of capital which is the power that
controls the use, and abuse of limited resources.
Cleverly reforming who, or what has this power is the
key to the future.

iii) Huge high risk projects which may have great
social,economic, and political value (eg. an
environmental programme perhaps vital for the planet)
would be possible with the creation of new unearned
money.

This could for example imply the greater financial
empowerment of corporations to create sustainable
futuristic cities intended to be underground,
undersea, and/or even floating on the sea to help ease
greater population growth.

iv) The creation of more business grants, plus
interest free loans allowing for continous material
prosperity. This would also have obvious positive
implications for various investments such as stocks,
and shares as markets would be more stable.

v) If desired, more public services could be provided,
and would be better financed.

vii) With the advance of automation the future will
become increasingly jobless. Yet, if necessary it
would be possible to have special businesses, and/or
NGOs which could be created out of new unearned money.
They would supply more advanced types of paid work
which may be more akin to "leisure-type" pursuits than
what we have now.

The above are key examples of what TFE could, and
would achieve. Success would also ofcourse crucially
depend on realistic creative planning, and relevant
resources.

Introduction to Transfinancial Economics.

The Main Essay/"Paper".

This is a brief "non-technical" introduction to a
"new" futuristic monetary reform. It is called
Transfinancial Economics (TFE), or Non-Taxation
Monetary Reform. It revolves around the concept that
new non-repayable unearned money can be responsibly
created without raising taxes, or even fundraising in
many cases. This is a "revolution" in our
understanding of money, and the world. In the right
hands, this concept could be one of the greatest
breakthroughs of the 21st century, and beyond.

It must be made abundantly clear from the start that
TFE has nothing to do with the so-called New World
Order, or certain "over the top" conspiracy theories,
or anti-semitism. What we are dealing with here is the
positive progressive evolution towards genuine open
democracy. This is indicated in the summary on
Positive Human Politics,or PHP discussed earlier on.

Legal Access to Financial Power,and Possible
Decentralisation.

There are four main organisations that could
responsibly order the creation of new money. They are
as follows:-

i) National Democratic Government: This organisation
instead of raising direct taxes on income, and
indirect taxation on goods, and services could order
the production of new funds in a measured way via
special Treasury Banks which are genuine independent
public authorities. Thus, programmes like the health
service, the military, the police, social security,
the law courts, and other expenditures would be
properly financed. Reform of such concerns would also
be stepped up as never before. Cost-effectiveness, and
cost-cutting which can cause various social, economic,
and political problems would become a thing of the
past.

However, all this does not mean more government waste,
or abuse of money. On the contrary, more powerful
legislation would be introduced to curb this.
Moreover, it must be remembered, and understood that
such future democratic governments would not have a
massive lump sum of tax money to draw upon. This would
only encourage overspending but with TFE it is simply
created in a measured way, and only after scrutiny
from a Treasury Bank which would have genuine legal
powers.

Also,import duties,and taxes on tobacco, alcohol, et
al would still exist but would be re-defined as
special charges, or civil fines.

ii) Local Government: This organisation could
responsibly order the creation of new money from a
Treasury Bank without the need to raise county taxes.
Hence, various community progammes would be properly
funded, and reformed where necessary.

iii) NGOs, or Non-Governmental Organisations: Many of
them would would no longer have to largely rely upon
the public, or wealthy donors. Instead, they could
receive new funds via a foundation,or trust (as is the
case today)which would order the creation of new money
from a Grant Generating Bank. These financial
institutions would be independent of governments, and
transnational companies, or TNCs.

The resulting money originating from the Grant
Generating Bank would be given by the trusts, and
foundations in full, or in part to various NGOs.
Charities concerned with the Third World, heart
disease, cancer, AIDs, and other humanitarian causes
would more than likely be fully funded. Yet, other
NGOs would only be in part financed by new money. The
implications of all this for democracy, and humanity
are stupendous.

With more financial empowerment of NGOs greater
decentralisation of power from central government can
be achieved if desired. This point is especially
relevant at the present time as politics, and
politicians have clearly lost all credibility, and new
alternatives are needed.

The above represents the Human Financial System of
Transfinancial Economics, or TFE. On the other hand,
the Economic Financial System is where money is
actually earned by people working as employees, or
employers of a business. Both Systems interact with
one another.

It is important to understand that from an objective
viewpoint unearned new money is just as valuable as
that which has been earned many times over. In TFE we
are trying to create a more advanced financial system
which tries to put humanity first, rather than just
money when it comes to important social, economic, and
political problems.

Ofcourse, finance itself is useless without effective
planning, and relevant resources. This is true of
goverments, NGOs, and indeed, everything else in life.
But, at the end of the day no matter how advanced our
social, economic, and political ideas, and reforms may
be ultimately it has to be financed by somebody, or
something. This is the simple, and inescapable truth.

In TFE money is regarded as a power which controls the
use, and abuse of limited resources. By reforming it
we can help change the world. The aim is to maximise
the good it can achieve for humanity.

It must be pointed out that when we talk about
creating "new money" we are ofcourse referring to
electronic transmissions of it. Cash makes up a
virtually non-existent portion of the entire money
supply.

It is important to understand that there is such a
thing as a free lunch. Government departments receive
"free" money as grants which they have not been
earned. Similiarly, a Will in which a beneficiary gets
a large amount of money (though originally earned
ofcourse) is something "unearned". Thus, it is an
example of a free lunch.

Some people have pointed out that if money as new
unearned electronic transmissions can be created
without earning it the value of it as something
vitally important, and "rare" is reduced. This is a
nonsense. The question is this. Is money, more
important than the genuine needs of humanity? For
instance, if millions of children are starving, and
there is little earned money to buy food to save
lives... would it be morally right to allow them to
die, or would it be more noble to have a system in
which new unearned finance could be created? This
could fully deal with such a situation as opposed to
the limited approach of using aid, or charity funds
(ie. earned money)which may not be enough to do the
"job" properly? This, ofcourse is one of a number of
examples that could be cited. Money, or humanity? We
have just given the former a higher value, and purpose
in the world.

Inflation, and Advanced Computer Technology

Inflation can be defined as the persistent rise in
prices. As money outstrips the production of goods,
and services their retail cost to customers goes up.
At the same time, this can lead to the devaluation of
currency. Thus, someone on a fixed wage may find that
their cash buys less than before. In mainstream
economics this basic concept of how price rises occurs
is referred to as Monetarism, and there are a number
of theories on how excess money actually enters the
financial system.

In the past notably, there have been attempts to
control inflation directly via policies on prices, and
wages. These had mixed results, and were only
temporary measures. At present, indirect methods to
control inflation are used by raising, and lowering
interest rates discussed later on.

Anyway, in TFE possible super-computers could be used
to keep an eye on serious persistent price rises. It
is a direct attempt at controlling inflation itself,
and far more advanced, and effective than the old
approach just mentioned. Essentially, the market in
part continues to determine price, and wage changes.
Such financial interactions are recorded on
super-computers (or perhaps some form of upgraded
computers). However, if there is a serious persistent
rise in inflation of prices, and/or wages they are
automatically fined, or capped. This appears on a bank
statement.

The above has nothing to do with a centrally planned
economy as understood in the old communist world. We
are dealing here with a competative capitalist system
in which Super-Flexible Pricing is allowable, and
possible. This is where one is given a higher range of
retail prices for a product, or service which has to
be registered under law (compulsory like Income
Tax).Admitedly, a certain amount of price distortion
could occur but with Super-Flexible Pricing this would
be largely minimised, or eradicated with certain
modifications.

At first the introduction of direct electronic
controls to tackle inflation would be unpopular. It
would require strong democratic governments to
implement it. Yet, businesses will learn to accept it,
and would find it by far more beneficial than taxation
on their profits. Indeed, they would experience rapid
commercial expansion. To further enhance the
situation, all business loans would be interest free
too..

Anonymous cash transactions would still be possible.
As is the case in our modern economy this makes up a
near non-existent portion of the entire money supply,
and thus, it would have little, or no affect on
inflation. Products, and services (including certain
wages) which have no obvious monetary value would be
exempt from price registration. Again,these too would
have little, or no affect on inflation as they would
only make up a small portion of the entire productive
economy. However, most products, and services have to
be registered by law.

Advanced computers when properly programmed can ensure
the value of peoples money when certain products, and
services are purchased. To understand how this works a
simple example should be enough. Lets say Mr. T buys
product X which happens to be 10% above inflation then
this very same percentage is created as new money, and
is actually added to his bank account automatically.
In TFE this is referred to as Inflation Interest. A
version using cash could be possible too.

Some people have wondered what would happen if there
was an excess money supply that would outstrip the
production of goods, and services. The answer is
simple. Such "wealth" would easily be saved for the
time being in deposit accounts indexed-linked to
inflation. With rapid economic growth more, and more
products, and services become available, and the
"dormant" funds due to excess money supply would now
be able to buy them. In other words, they would become
part of the productive capacity of the country.

Some people have suggested that the weakness of TFE is
its reliance on advanced computer technology. Yet, we
forget that our present banking system relies on it
all the time. Out of necessity security is continually
improved, and no hacker has yet brought down the
entire network permanently. If that had been the case
we would have all known about it!

Other critics have pointed out the problem of privacy.
Yet, is it really such a problem.....especially when
we realize that in our present world it hardly exists
at all? In this respect, TFE is not necessarily going
to make things any worse, or better as far as legal,
and "illegal" access to personal information, or
privacy is concerned.

Anyway, there are many other aspects concerned with
electronic controls over inflation which cannot be
discussed here, and at the end of the day they would
have to be hammered out by experts in economics, and
information technology.

The Problem of Redistribution.

In TFE there is no redistribution of financial wealth.
Rather there is a greater distribution of new money.
The problem of redistribution at the present time is
that the money involved is earned, and based on the
productive capacity of the country. TFE goes beyond
this to make sure that most social, economic,and
political programmes, and projects carried out by
democratic governments, and NGOs are properly funded
as never before.

Let us take an example of what we are actually saying.
The Tobin Tax on currency speculation is intended to
raise funds for the Third World, and if it were
implemented the resulting monies would probably not be
enough. On the other hand, TFE would be able to
maximise funding initially created by the Grant
Generating Banks.To do this by taxation, or by
fundraising is unnecessary, and backward. The best,
and most effective means of achieving these aims is to
have new money created responsibly.

The financial genius, George Soros has suggested that
the Special Drawing Rights (or SDRs) of the
International Monetary Fund could be created as grants
rather than loans. These would help the Third World,
and the idea is strikingly similiar to the concept of
the creation of new unearned money in TFE.

Ofcourse, people make the valid point that there is
more than enough money to change the world many times
over. The problem lies with legal access to it
whenever there is a genuine need for it. This is the
key point to grasp.

The Major Anti-Tax Arguments.

There are a number of excellent reasons for the
abolition of direct, and indirect taxation. They are
as follows.

1. It is now a gross absurdity to raise money through
taxation when it can be easily created in a measured
way by the relevant authorities without fear of
hyperinflation.

2. Everyone is entitled to all the money they earn,
and as such it is morally wrong to have some of it
deducted for tax purposes when it is no longer
necessary.

3. It is highly unethical to fund any waste, and abuse
of government spending.

(This incidently includes the National Debt which is
created by governments borrowing from private
commercial banks. This is mainly paid for by the
taxpayer.With TFE though this could be paid off, or
destroyed as the elected authorities would have legal
powers to do so via a Treasury Bank.)

4. Increasingly, the super-wealthy are finding legal
loopholes to avoid tax, and as such they are not
paying their fair share into the system. As a result
all this means that the less well off are having to
make up for the shortfall which is wrong. The
situation is further made worse when bank accounts
can be easily switched from one country to another
thus making the life for the tax inspectors hell.

5. It is we, the people who create the real wealth of
the country in the form of products, and services.
Why then should we continue to be ripped off by a tax
system when we can now at long last be rewarded by a
democratic government with a policy of Non-Taxation?
Why should we continually have to pay for everything?

6. Many wars,and revolutions have been directly, or
indirectly caused by taxation. Its abolition would be
popular, and a potential vote winner....as most people
are more interested in their financial status than in
politics, and politicians. TFE would thus be highly
attractive to the masses.

Interest Free Monetary Reform.

At the present time radical monetary reform is
concerned with the power of banks. These private
commercial companies create virtually all of the money
of the world as loans, or credit. Strictly speaking,
governments issue the rest as coins, and paper. The
banks though produce it "out of thin air" by simply
adding figures of a higher monetary value onto paper,
and/or computers. There is also meant to be a limit
on how much they can create, and this is based on
"money" kept in reserve. This whole set-up is called
fractional reserve banking. The banks ofcourse make
huge super-normal profits on their loans for
commercial, governmental, and private use (eg.
mortgages).

Some critics of fractional reserve banking have stated
that it is a fraud in that it counterfeits the
national currency. More seriously, it produces
non-existent "funny money" which is unwittingly
accepted by all, and sundry. As with TFE they are able
to create new unearned money on daily basis but as
something which is repayable.

Since virtually all of the money in the world is
produced by banks it is believed that changes in the
interest rates of their loans may well be the real
cause of inflation. When the economy is not doing well
the interest rate on borrowing notably for businesses
is reduced to encourage a high take up. This in turn
means expansion of commercial enterprises, and
increased employment leading to a general material
prosperity. As more, and more money is allowed to
circulate it has to be somehow reduced to avoid
serious degrees of inflation. This is done by raising
interest rates on loans so that they discourage
commercial take up. This results in less business
expansion, decreased employment, and a certain amount
of economic depresson. The whole cycle is then
repeated.

Anyhow, the aim of monetary reform itself here is to
have loans created without interest. This could put a
complete end to the business cycle of "boom", or
"bust" just described. Interest free loans would be
highly beneficial for the economy, society, and
politics.It would also mean that the banking system
itself would no longer be a massive commercial
enterprise. Instead, an independent public authority
would issue interest-free credit.

The big problem here ofcourse is that the banks are
very powerful indeed. They would take immediate legal
action against any country if they felt that their
huge global monopoly was being seriously threatened.
One way then to successfully undermine their great
power is to use Simultaneous Policy. This is the
modernization of an old concept. In it people can at
election time vote for those candidates, and/or a
party who are willing to accept their policy proposal.
The aim here ideally is to get most countries to try,
and implement it simultaneously. Such an approach
could be used against banks who would have little, or
no choice but to comply to their own demise. This
could make way for independent public authorities
which would lead to an interest free, and indeed, a
tax free economy.

More controversially, there is another approach
suggested by TFE. Banks could still make super-normal
profits but without charging their customers. How? The
answer lies with the concept of Auto-Profit companies.
They receive new unearned money as profit. The
calculation of the latter is directly based on
business records of clients. Yet, many interest free
monetary reformers would be horrified by such a
proposition, but at least it could make the transition
from a interest based economy to an interest free one
alot easier. Indeed, the author is coming to the
conclusion that this is the best way forward along
with the need for positive engagement with banks, and
corporations as explained later..

This brings us to another point. Non-Taxation Monetary
Reform (ie. TFE) is far more important than
Interest-Free Monetary Reform as its social, economic,
and political benefits are totally outstanding. The
latter should be united with the former if it is to be
truly successful, or have any real impact on the
public. As such Interest-Free Monetary Reform is seen
as being of secondary importance compared with
Non-Taxation Monetary Reform. Thus, both proposals
make up Transfinancial Economics, or TFE.

Sustainable Economics, and Resource Scarcity.

In the present era we live in a high growth economy.
Green Sustainable Economics believes that this has
lead to over-production, and over-consumption. It
suggests that people should simplify their lives, and
reduce their wants so that little, or no more natural
resources are used up. In other words, it ideally sees
the zero, or stationary growth economy as "the way
forward." In such a world people would live in small
self-organising, and self-sufficient communities
consisting of family businesses, and cooperatives. A
LETS (Local Exchange Trading Scheme)could also be
included, and this is simply a made up alternative to
money, or community currency which would be
acceptable to those in the area, and possibly beyond.
Food would largely be grown locally. Here, ofcourse,
we are not discussing socialism, and redistribution of
wealth but rather a fairer distribution of it.

All this sounds fine in principle but it would take
many decades before it became a national, and indeed,
an international reality. By then most, or perhaps all
natural resources would have been used up. The ideas
presented in the last paragraph are understandable
reaction to governments, and big business. It is an
attempt to be free of them, and instead take on the
laudable mantle of self-sufficiency, and a more
simple, and slower pace of life.

Unfortunately, it does not change the big problems of
the world which are far more important. TFE is in the
main concerned with this, and nothing else. Big
changes require big ideas that must seriously address,
and challenge the status quo no matter how difficult
it may be.

The reality is that in the present high growth
economy much of the earths wealth is being massively
depleted at an unprecedented rate. Non-renewable oil,
and coal are classic examples of this. But, all is not
lost. New ideas, and green technologies are emerging
which could help our planets plight.

In TFE it is believed that sustainability is indeed
possible in a high, or rather higher growth economy.
With the huge influx of new unearned money, and
interest free loans, NGOs, and businesses will be able
to speed up as never before the research, and
deployment of various "safe" complex (eg.
nanotechnology), and "simpler" clean, cheap,
renewable technologies (eg. wind power, solar energy,
biomass,wave power,thermal energy, et al) to "save the
planet." Moreover, such funding can come independently
of governments, and transnational corporations, or
TNCs. In a like manner, future democratic
governments, and even certain NGOs along with
businesses would be able to undertake any gargantuan
environmental (or non-environmental) project that
might be vital for the survival of the human race.

A huge problem in all this is ofcourse the worlds
reliance on oil, or black gold. With TFE the switch
from this non-renewable resource to renewable ones
could be accelerated. This would involve the gradual
break up of the oil industry in which TNCs could be
bought up by huge financial inducements in which
shareholders could be paid off with large amounts in
compensation. The top people though in the oil
corporation concerned could still be paid massive
profits using new unearned money but on condition that
they involve themselves in the rapid mass production
of sustainable technologies. Ofcourse, new profits
could be heavily subsidized making the whole venture
worthwhile, and viable in extremis. In other words, a
legal "bribe." Such Ethical Business Conversion,or EBC
could be funded with newly created money by the Grant
Generating Banks, special business NGOs, and/or
democractic governments.

Ofcourse, one of the major problems of todays world is
global warming due to emission of greenhouse gases.
Special green, or eco-taxes which try to reduce this
are a limited approach compared with what TFE could
achieve. However, they may prove to be vital, and
realistic step in the right direction. In TFE ofcourse
such taxes would be seen as civil "fines".

Apart from the above claims space research itself
could be stepped up to find any clean alternative
energy resources on other planets that may be
invaluable for our world, and environment. This would
involve massive injections of capital to be
worthwhile, and successful. Ultimately, other planets
would be colonized.

The Third World, and the Transnational Corporations.

Year in, and year out millions of people mainly
children die in Africa. This is a wholly unacceptable
situation. To help relieve poverty a number of NGOs
notably exist, but if they had legal access to
continous funds they would be able to do so much more
in the way of better health, free education, and
setting up self-employment projects. At the same time
many lives would be saved from useless, and pointless
death. With TFE this would be possible without public
donations, or indeed, government aid. The ultimate aim
of such Third World NGOs is to help the poor help help
themselves.

A key factor to the terrible poverty in Africa, and
elsewhere in the Third World are the unfair trading
laws, and the gargantuan power of the Transnational
Corporations, or TNCs. The status quo does not fully
allow the poor to export goods to rich countries due
to restrictions. Thus, they are unable to earn their
way out of poverty. The TNCs themselves on the other
hand benefit from this situation as it gives them a
huge monopoly over the production of goods, and
services in the Third World. This earns them billions
in exports to rich countries as they can get
everything on the cheap (notably labour). At the same
time, they have caused a large amount of environmental
destruction which is is totally unacceptable.

Ideally,what is needed are genuine international
trading laws which favour the poor as well as the
rich. This could happen via Simultaneous Policy
already mentioned.Yet, even if this were to come about
it may still be difficult to enforce such legal
measures. In TFE, there are two key approaches to this
problem...

NGOs concerned with such matters of corporate
responsibility (or lack of it!) would be able to
successful challenge, and perhaps even reform the TNCs
with various business tactics (eg.buying up shares).
The reason being ofcourse is that they would be
financially empowered as never before so that they
could deal with them on a level playing field unlike
now. This would be a big step forward for global
justice.

Another more positive, and constructive approach is
Ethical Business Conversion, or EBC discussed in
connection with the oil industry. In it Grant
Generating Banks,NGOs, and/or democratic governments
would have huge financial power to create new
unearned money. This could be used to improve, and
replace non-evironmentally friendly technologies, and
factories run by TNCs if they are agreeable to it.
Ideally,they could possibly pay in part for the cost
of the changeover. Again, TNCs could have their
profits heavily subsidized. Such a monetary measure
makes "turning green" truly viable in the commerical
world.

Poor workers too could have their wages subsized
though ideally the TNCs should pay the fair price.
Their health, and safety would be monitored by
powerful NGOs even though this should be job of
government agencies (with genuine legal powers) in the
Third World.

Another problem with the Third World notably in Africa
is getting aid to the right people. Much of it has
gone instead into the pockets of corrupt officials,
and dictators. However, with financially empowered
NGOs concerned with such issues would be able to fully
fund new, and existing ways of avoiding this as far as
is possible.

The arms-trade which has sold many weapons to the
Third World where wars have been known to erupt could
be curtailed by future democratic governments. With
EBC this would be possible, and could lead to greater
profits when such a huge business is "converted" into
something more "ethical" (eg. the possible creation of
special super non-lethal weapons to help maintain
world peace mentioned in the TFE summary earlier on).

As can be seen here the Third World is a complex issue
with no easy solutions. But with TFE so much more
could be done which is positive, and progressive, and
indeed, more in keeping with global justice.

Greater Equitable Income.

Though not as appalling as the Third World a certain
amount of poverty exists in the rich nations of the
globe. With TFE there is always the finance available
to genuine democratic governments, and NGOs to
alleviate it. At the same time, there are a number of
ideas which exist on paper, and in reality to deal
with this. These include the basic re-occuring theme
of people owning a fair share of the profits of a
company (as well as possibly receiving a working
wage). The Co-operative Society, and Binary Economics
could be seen as instances of this kind of thinking.
Because of their high ethical nature their creation
would probably be aided with interest free loans, and
indeed, new unearned money where capital may be
difficult to come by.

In a genuine cooperative where money as profit, or
wages is shared equally there is a possible problem.
It could well result with having no capital to fund
greater expansion. In TFE, it may be eligible for new
unearned money as a business grant.

Anyway, apart from this there is a more radical
approach to poverty alleviation. It is the Universal
Basic Income, or UBI. This is intended for everyone as
a human right irrespective of their means. With TFE
such a policy would be easily implemented. Another
similiar idea which exists in the developed world to
varying degrees is income support for those who are
under-employed. Here, TFE could top up the amount of
money people were getting in this manner if necessary,
and also give them a far greater range of courses,
along with new jobs, or business oportunities.

Furthermore, pensions in the future could be funded
properly with new money. Thus, those who have worked
all their life for the economic betterment of the
community would benefit.

A more astonishing aspect of TFE is that special
businesses, and and/or NGOs could be created in the
future. With increasingly automation jobs would become
very difficult to find until a stage is reached where
most of the population is jobless. In Binary Economics
a large number of people could live off the profits
generated.

However, in TFE new forms of "work" could also appear
where, and when necessary which may be more akin to
"leisure-type" activities. This would all be paid for
by new unearned money rather like the Auto-Profit
concept described earlier on with banks. This ofcourse
would be a revolutionary step forward, as it would
mean that in the future people would still have more
than enough money to buy products, and services.
Ultimately, this medium of exchange would be
abolished, and everything would be free on demand.

Whether we like it, or not and as already indicated it
is unlikely that TFE will become a reality in record
time if we take a full moral stance against banks, and
transnational corporations, or TNCs. They have become
too powerful, and too entrenched in the present
economic system.It is suggested here that we should
ideally support the following two points:-

i)Banks as private commericial enterprises should
still exist, and have their profits (including service
charges) paid for by an independent public authority.

ii) TNCs could be legally "bribed" into converting
their technologies into complex sustainable ones, and
mass produce products, and services. This would hugely
benefit the environment, and sustainability. In other
words, Ethical Business Conversion, or EBC as already
discussed.

Critics notably of the left-wing persuasion would
argue that this is "selling out" to the
super-capitalists, and super-capitalism. Yet, what is
the alternative? If the global economy continues to
grow without full measures for sustainability then
clearly the human race is heading towards extinction.

Moreover, a more moral crusade against banks, and
corporations is probably not going to inspire enough
public support to bring about real change. Most of the
populace in the rich countries have lost faith in
politics, and politicians, and hence, feel genuinely
disempowered.

Furthermore, to finance such a campaign would require
much in the way of funding. Yet, if we work with
banks, and corporations this should not be a problem
when many of them realize that TFE is in their own
interest. They could then influence rich governments
to introduce it on an agreed time-scale.

It should though be stressed that Grant Generating
Banks should as mentioned earlier be independent
public authorities. Private commercial ones would
still exist ofcourse.

To start the whole process rolling a proper
professional website would need to be set up, and
links to it should be sent to the powers that be in
the rich "democratic" world. It should notably contain
the following:-

1) An introduction to TFE, including a "simple"
powerpoint presentation of it so that it is quickly,
and easily understood.

2) News about the TFE campaign.

3) Commissioned papers by respected academics on the
feasibility of the electronic controls over inflation.
This could involve econometrics. However, all such
data, and statistics are always suspect but it would
give the campaigning TFE website greater credibility.

4) Letters of support from certain respected
academics.

5)An interactive download which would present how
electronic controls could work in the real business
world.

6) Links to various respected websites on NGOs,
university departments, and companies concerned with
sustainability, new energy, finance, et al.

7) A Call to fully fund trials "in the field" by
governments, and corporations for electronic systems
over inflation. Improvements may well be necessary.

Ultimately, such engagement will require negotiations
between rich democractic governments, and TNCs plus
other interested parties (eg. the banks)for TFE to
become a reality.

Legal safeguards should be put in place to prevent
"too much" commercial expansion. This could be aided
by special business "NGOs" which could use "compulsory
purchase" orders to limit the power of certain TNCs.
Yet, the latter would be allowed to expand greatly but
in a way which takes full account of sustainability,
and global justice.

Moreover, the Third World would benefit along with the
TNCs. The reason being is that the former would
receive genuine business help. If this leads to
greater economic (but sustainable) growth the TNCs
would have a new emerging market to sell their
products, and services(which could be heavily
subsidized by new unearned money to make it very
profitable).

There are other aspects to all this but they are still
subject to research, and development.

Non-Taxation Past, and Present.

Transfinancial Economics, or TFE is a new paradigm in
so far as it is a modernization of an old concept.
Self-supporting communities have always existed with
little, or no taxation.

Social Credit which was founded back in the early 20th
Century by Clifford Douglas believed in new money, or
rather what it termed debt-free money. It claims that
if sufficient amounts of it were created there would
be no serious inflation. The key point to understand
about Social Credit is that its debt-free money does
not appear to replace taxation and is thus limited.
Furthermore, interest on loans would still exist.

A book with the misleading title of Public Finance
Without Taxation by Ronald Burgess exists. It deals
with Henry Georges economic reform. This involves the
notion that a rent, or rather more accurately, a
property tax on land could be levied to fund
governmental programmes. In other words, it does
involve a form of taxation which contradicts the title
of the aforementioned book!

Interestingly, an advanced socialist system has been
suggested in which everything is run by co-operatives.
Since all the wealth would be fairly redistributed
there would be no need for any taxation. However, in
genuine utopian socialism there is no money. Instead
all necessary activities are done out of service to
the community.

Abba Lerner the founder of Functional Finance appears
to have believed that savings could lead to a
situation of lower taxes, or indeed, zero taxation.
John Gelles came up with the same ideas independently,
and is a prolific emailer on monetary reform, and
related topics.

John DeSantis, in Baltimore USA had a vision of
economic reform in which taxes would not exist. His
ideas appear on a website, but as he himself admits
they require improvement. Shauna Mckay has similiar
notions with her ideal of the Perfect System.
Xat.community org. is a LETS group, and believes in
Non-Taxation, and has even made the claim that
alternative currencies would ultimately replace legal
tender!Also, an engineer called Theodore Thoren used
mathematics to claim that zero taxation was possible.

Ofcourse, in times of emergency, and revolution
governments have been forced to partly, or even fully
finance their expenses via the printing of new
unearned money. Examples include the American War of
Indepedence, the French Revolution, the American Civil
War, and the Russian Revolution.

Finally, to end our section on TFE there is a claim
circulating on the internet that Benjamin Franklin
spoke of Colonial Scrip which was a successful
monetary currency that was actually free from
taxation, and acted as the national medium of
exchange. It could also be borrowed without interest.
This financial arrangement occured just before the
American War of Independence yet research has yet to
confirm these claims.

Transfinancial Economics, or TFE does not pretend to
be the ultimate panacea for all things social,
economic, and political but it does offer a powerful
new approach which could help to solve many problems.
As such it needs to be taken seriously.

Some Key References.

An exhaustive listing is not presented here.

Adams, Charles, For Good, and Evil; The Impact of
Taxes on the Course of Civilization. Madison Books,
1999.

Bunzl, John. The Simultaneous Policy; An Insiders
Guide to Save Humanity, and the Planet. New European
Publications, 2OO1.

Hertz, Norena, The Silent Takeover; Global Capitalism,
and the Death of Democracy. Heinemann, 2001.

Rowbotham, Michael, The Grip of Death; A Study of
Modern Money, Debt Slavery, and Destructive Economics.
Jon Carpenter,1998.

Sabine, B.E., A Short History of Taxation. Lexis
Publishing n.d.

Stanlake & Grant, Introductory Economics, Longman,
1995

Zarlenga, The Lost Science of Money; The Mythology of
Money..the Story of Power. American Monetary
Institute, 2002.